Corporation Franchise Tax

Corporate Franchise Tax: Number of Corporations and
Reported Tax Liability, by Tax Base and Industry, Tax Year
2001

The attached tables show a total reported tax year 2001 Ohio
corporate franchise tax liability after all credits of $705.1
million. The reported liability before credits (including
litter tax) was $821.1 million, but tax credits reduced the
net liability by $116.0 million. A total of 104,913
corporations were represented on the 2001 returns, with
25,173 corporations paying the tax based on net income and
33,351 paying the tax based on net worth. The number of
corporations paying the $50 minimum tax amounted to 46,389.
However, 77 percent of the tax liability before credits was
based on net income (compared to 81 percent in 2000) and 22
percent was derived from the net worth base (compared to 19
percent in 2000). The remainder of the tax was reported as
liability under the minimum tax. Tables CF-1A and 1B show the
number of corporations and the reported total tax liabilities
by tax base for each of nine broad industrial
classifications. The largest total tax liability was reported
by manufacturing corporations, which accounted for 34 percent
of the total. Tables CF-2A and 2B categorize the corporate
returns by the size of the reported tax liability per return.
The number of corporations and total tax liability are shown
for each of the alternative tax bases for 18 tax liability
classes. Returns reporting over $500,000 in tax liability
were responsible for 37 percent of the total reported
liability even though they covered less than one percent of
total corporations. The data shown on these tables were
compiled from returns filed for tax year 2001 with the Ohio
Department of Taxation.

NOTE: These tables do not include data from the tax returns
of financial institutions. Data from financial institution
returns are shown on a separate table (CF-5).